CRITICAL SUCCESS FACTORS AND ORGANIZATIONAL PERFORMANCE OF INDIGENOUS THIRD PARTY LOGISTIC BUSINESSES IN TRANSPORT SECTOR IN KENYA

Mary Mwanzia

Abstract


The main objective of this study was to investigate critical success factors and organization performance of indigenous third party logistic businesses in the transport sector in Kenya. The third party logistics industry has been constantly changing due to global industry consolidation, technology integration, industry specialization, and industry alliance networks. Literature presents five different critical success factors for creating organizational performance. These are operation cost, innovation, resilience, quality service and relationship management. This paper was to analyze from the retailers’ perspective, how factors of third party logistics providers could meet the customers’ needs better and create organization Performance in the third party logistics market. The empirical data was collected through Questionnaires and interview schedules.  In total 181 Logistic firms were to take part in the survey, Census enquiry was used to get the sample where operations managers in the indigenous third party logistic companies were respondents who were interviewed. The collected data was analyzed using descriptive research design an exploratory factor analysis, multi- collinerity test, inferential statistical analyses and linear regression tests was carried out for each variable in the study. Data analysis was done using SPSS to generate quantitative reports through tabulations, percentages, and measures of central tendency. Validity and reliability was tested using a pilot study.

Key Words: Critical Success Factors, Logistics Businesses, Operation Cost


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